The world economy develops in a spiral - take-off is always followed by a recession, often ending in an economic and financial crisis. But any crisis ends sooner or later, and it is replaced by another upswing. The past century has been rich in financial cataclysms. The events of recent years indicate that the present century is not going to yield to it in this.
History knows many financial crises, differing in their strength and the number of countries affected by them. The beginning of the last century was marked by the crisis of 1907, which was caused by the increase in the interest rate by the Bank of England from 3.5% to 6%. This caused an inflow of money into the country and, accordingly, their outflow from other countries. The United States became the main supplier of funds, which led to a collapse of its stock market and a protracted recession in the economy. The consequences of this were reflected in a number of other countries.
The reason for the financial crisis of 1914 was a general understanding of the inevitability of an impending war. Large funds were needed to prepare for the war, so many countries - the United States, Germany, France, Great Britain and some others - were selling securities in large volumes, which led to the collapse of the financial market. The end of the First World War was marked by the crisis of 1920-1922, caused by deflation against the backdrop of a severe decline in production and banking crises in a number of countries.
The famous Great Depression of 1929-1933 began with Black Thursday. October 24, 1929. The Dow Jones Index and stock prices on the New York Stock Exchange fell sharply, which led to a crisis not only in the United States, but also in several other countries. The governments of these countries did not have the necessary resources to inject into the economy in order to support and stimulate it; as a result, the general decline in production caused massive unemployment. The echoes of the crisis were felt until the end of the thirties.
In 1957-1958, the economic and financial crisis gripped the United States, Canada, Great Britain and a number of other countries. This was the first crisis after the end of World War II.
In 1973-1974, the oil crisis broke out, caused by a fourfold increase in the price of oil. The reasons were Israel's war against Egypt and Syria and the reduction in oil production in Arab countries.
Day October 19, 1987, called "Black Monday", was marked by the collapse of the US stock market - the Dow Jones fell by 22.6%. The stock markets of a number of other countries also collapsed.
1994-1995 brought the Mexican crisis to the world. In 1977, the Asian crisis broke out, and the next year - the Russian one. These were difficult times for Russia - huge national debt, devaluation of the ruble, and falling oil and gas prices.
The new century also did not stay away from cataclysms - 2008 brought the world a severe economic crisis. Thanks to the accumulated funds, Russia was able to survive this crisis relatively well, but some experts are already predicting a second wave of the crisis. The euro area is on the verge of collapse; many European countries are essentially bankrupt. Therefore, the coming 2012 for the global financial markets will certainly be very difficult.
